Driving down the costs of decommissioning through technology. Malcolm Banks & Susi Wiseman Offshore Decommissioning Conference, November 2017

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1 Driving down the costs of decommissioning through technology Malcolm Banks & Susi Wiseman Offshore Decommissioning Conference, November 2017

2 Creating value Unlock the potential of the UK North Sea Anchor the supply chain in North East Scotland Create a culture of innovation that attracts industry and academia 180 million City Region Deal funding

3 Our business We are all about technology innovation Inspire Stimulate Accelerate Deliver working in partnership with industry. We inspire, accelerate and fund technology and innovation

4 Our themes Asset Integrity Well Construction Small Pools Decommissioning Digital Eliminating the impact of asset integrity on uptime Reducing drilling costs by 50% Developing up to 3.4 billion barrels of oil and gas discoveries Driving down the cost of decommissioning Transforming performance and unlocking hidden data Focused on industry-led challenges

5 Technology vision Technology can transform the oil and gas industry for the low carbon future

6 Strong delivery Positive engagement with companies of all sizes

7 Delivering innovation Our solution centres Identify Co-fund Develop Deploy Operators Understanding your challenges Investing to develop solutions Reducing project risks Supply chain and innovators Accelerating technology development Accessing new markets and end users Delivering field trials Five solution centres

8 Wells Construction: Goals 100% 50% 35% Well Construction Cost Reduction Flawless Delivery Well Reliability for Design Life Abandonment Cost Reduction Reducing costs and improving efficiency

9 Abandonment activity 4 10 Four projects already underway First call for ideas programme 10 projects underway by year end Transformation the plugging and abandonment of wells

10 Thermite collaboration 9 Collaboration between nine operators Sharing data for global deployment and testing Funding field trials Engaging with regulators on acceptance and verification Working in partnership with industry and regulators

11 1st Call: Transforming P&A Stage 1 48 ideas June 11 th 4 week evaluation 27 ideas Stage 2 7 th July Listen and work with innovators to develop ideas Shortlist of 12 ideas Stage 3 Deploy October The road to transformation

12 1st Call: Outcomes Theme 1 Understand existing well conditions A multiscale approach to modelling the probability of hydrocarbon flow to surface Theme 2 Verification of newly installed barriers Multi-wellbore integrity system Theme 3 New Barriers Metal alloy sealing technology Biogrout/colloidal silica Dragons Den 4 ideas selected 1.3 million funding

13 Decommissioning: Goals Decom, Asset and Liability Cost reduction Supply Chain Growth Stakeholder Alignment Technological Success Technology projects linked to industry challenges

14 Decommissioning: Strategy Early summer 2017 Facilitated workshops with operators and contractors in early summer 2017 Analysis and refinement of outputs by the DSC team Aug Oct 2017 Individual consultations with all delegates at summer workshop Get behind the headline topic and capture the essence of the challenge Results from consultations embodied into DSC Focus Themes November 2017 Initial Focus Themes shared and discussed with DSC Member Companies Publish the strategy & initial focus themes at Offshore Decommissioning Conference November Broad industry engagement

15 Focus areas Knowledge Exchange Removal Readiness Life Support for Decommissioning Innovative Removal Solutions Residual Liability Planning optimisation Best practice Standardisation Learning from each other Culture change Competency Optimising PoB / Post CoP OPEX Wells Interface Topsides preparation (incl. controls system) Hazardous materials management (NORM / LSA, asbestos ) Alternative cleaning options Power (with emissions control) Potable water HVAC Accommodation Personnel access Fire and gas detection system Portable systems (plug & play) Alternative for platform craneage Alternative solutions for structures removal and transportation (topsides) Subsea - innovative cutting, lifting and transportation Mattress removal Bundles decommissioning Re-use of equipment and materials Impact reduction Marine Science Monitoring Inspection Data acquisition and analysis Sensors UAV / ROV / AUV Burial techniques Planning (operation) Cessation of Production Post production cessation Structure removal & disposal Monitoring

16 Focus areas Knowledge Exchange Planning optimisation Best practice Standardisation Learning from each other Culture change Competency Removal Readiness Optimising PoB / Post CoP OPEX Wells Interface Topsides preparation (incl. controls system) Hazardous materials management (NORM / LSA, asbestos ) Alternative cleaning options Innovative Removal Solutions Alternative for platform craneage Alternative solutions for structures removal and transportation (topsides) Subsea - innovative cutting, lifting and transportation Mattress removal Bundles decommissioning Residual Liability Re-use of equipment and materials Environmental impact reduction Marine Science Monitoring Inspection Data acquisition and analysis Sensors UAV / ROV / AUV Burial techniques Life Support for Decommissioning Power (with emissions control) Potable water HVAC Accommodation Personnel access Fire and gas detection system Portable systems (plug & play) Planning (operation) Cessation of Production Post production cessation Structure removal & disposal Monitoring

17 First call for ideas Life support for decommissioning Industry reports of recurring difficulties in recent and current decommissioning programmes resulting in low flexibility, lost time, cost overruns and inconvenience to on board personnel. Innovative life support system - power (with emissions control) - potable water - HVAC - fire and gas detection - accommodation (if required) - personnel access (if required) Further information Proposed solutions should be portable or transportable and provide an innovative and efficient approach to the integration of the full scope of life support functions. Contact: susi.wiseman@theogtc.com Transforming how we do decommissioning

18 First call for ideas Life support for decommissioning Operators are reporting significant downtime due to the fumes from temporary diesel power generators used during the post cessation of production and wells P&A period through to structures removal. Reduce, eliminate or improve fumes Alternative power source / generation Optimise current diesel generators air emissions Innovative exhaust clean up technologies Further information Technologies and/or techniques able to reduce, eliminate or improve the unpleasant and potentially harmful exhaust fumes from diesel generators and resolve this common decommissioning challenge. Contact: susi.wiseman@theogtc.com Transforming how we do decommissioning

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